ZHENJIANG, China, June 21, 2016 /PRNewswire/ -- Delta Technology Holdings Limited (NASDAQ: DELT) announced today that the Company is dedicating existing facility capacity to produce up to 500 tons per year of prothioconazole, a wide spectrum triazoline-thione germicide used to prevent and cure crop diseases. Prothioconazole exhibits low toxicity, no teratogenicity, no mutagenicity, and no toxicity to embryos and has been found to be safe for humans and the environment. Bayer is currently the only company in the world producing prothioconazole at scale with output of approximately 3000 tons/year.
Delta already manufactures both 2-Chlorobenzyl chloride and 4-Chlorotoluene, two of the primary raw material components in prothioconazole production. The company plans to manage production within excess capacity in existing facilities, and expects sales of prothioconazole to generate USD100 million in revenue at prevailing market prices with gross margins reaching 40% at scale.
Delta has worked with Dr. Wang Xiaolong in developing its prothioconazole capabilities. Dr. Wang is a former student of K. Barry Sharpless (winner of the 2001 Nobel Prize in Chemistry), a former engineer of Pfizer Pharmaceuticals, and post-doctoral mentor at Nanjing University of Traditional Chinese Medicine. Under Dr. Wang's leadership, the company has completed multiple bench and pilot tests and has successfully produced 100 kilograms of the compound, making it China's top prothioconazole manufacturer.
About Delta Technology Holdings Ltd.
Founded in 2007, Delta is a leading China-based fine and specialty chemical company producing and distributing organic compound including para-chlorotoluene ("PCT"), ortho-chlorotoluene ("OCT"), PCT/OCT downstream products, unsaturated polyester resin ("UPR"), maleic acid ("MA") and other by-product chemicals. The end application markets of the Company's products include Automotive, Pharmaceutical, Agrochemical, Dye & Pigments, Aerospace, Ceramics, Coating-Printing, Clean Energy and Food Additives. Delta has approximately 300 employees, 25% of whom are highly-qualified experts and technical personnel. The Company serves more than 380 clients in various industries.
Safe Harbor Statement
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded or followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans," and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. Forward-looking statements in this release also include statements about business and economic trends. Investors should also consider the areas of risk described under the heading "Forward Looking Statements" and those factors captioned as "Risk Factors" in DELT's periodic reports under the Securities Exchange Act of 1934, as amended, or in connection with any forward-looking statements that may be made by DELT.
Delta Technology Holdings Ltd.
Hongming Dong, Chief Financial Officer
Phone: +86 511-8692-0003 (China)
Delta Technology Holdings Ltd.
Brian Zhang, Investor Relations Manager
Phone: +86 511-8696-5556 (China)
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SOURCE Delta Technology Holdings Limited